Union Commerce and Industry Minister Piyush Goyal briefs media concerning the Cabinet choices on Thursday, in New Delhi. (Photo: News18)
The DA hike will price the exchequer Rs 12,868 crore
seventh Pay Commission: In a bonanza for central authorities staff, the Union Cabinet on Thursday authorised a 4 per cent hike in dearness allowance (DA) to 50 per cent of the essential pay. The 4% DA hike, which is able to profit over one crore central authorities staff and pensioners, will grow to be efficient from January 1, 2024.
Briefing concerning the Cabinet choices right now, Union Commerce and Industry Minister Piyush Goyal mentioned, “The DA hike will cost the exchequer Rs 12,868 crore.”
The authorities has additionally elevated dearness reduction (DR) by 4 per cent. DA is given to authorities staff, whereas DR is given to pensioners. DA and DR are hiked twice a yr, with impact from January and July.
How Much Salary Hike Will Central Govt Employees Get?
Since the federal government has introduced a 4 per cent DA hike, how a lot is the wage hike doubtless for central authorities staff? If someone’s wage is Rs 50,000 per thirty days and has Rs 15,000 as the essential pay. He or she at the moment will get Rs 6,900, which is 46 per cent of the essential pay. However, after the 4 per cent hike, the worker will get Rs 7,500 per thirty days, which is Rs 600 increased as in contrast with Rs 6,900 earlier. So, if somebody has a Rs 50,000 wage a month with Rs 15,000 as the essential pay, his or her wage will rise by Rs 600 per thirty days.
In the earlier DA hike in October 2023, the federal government had elevated the dearness allowance and dearness reduction by 4 per cent to 46 per cent.
How Does Govt Calculate DA Hike?
The DA and DR hike is determined based mostly on the proportion enhance in 12 month-to-month common of the All-India CPI-IW. Though the central authorities revises the allowances on January 1 and July 1 yearly, the choice is usually introduced in March and September/October.
In 2006, the central authorities had revised the system to calculate the DA and DR for central authorities staff and pensioners.
Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the previous 12 months -115.76)/115.76)x100.
For Central public sector staff: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the previous 3 months -126.33)/126.33)x100.
